Janet receives an inheritance of $30,000, which she Invests at 7% per annum, compounded annually. If Janet had a marginal tax rate of 40%, how much greater would her net worth be in two years if she makes the same lump-sum investment within an RRSP? She will pay the tax on the investment income from that investment income, annually. The funds will also remain in the RRSP after the two years.

Answer rating: 100% (QA)

To compare the net worth of Janets investment inside and outside of an RRSP we need to consider the ... View the full answer